- Jamaica's De Cordova-Reid joins Leicester from Fulham
- Wolves' Kilman reunites with Lopetegui at West Ham
- Schmidt reign off to winning start as Australia beat Wales 25-16
- Russian wrestlers reject Olympics invitation
- Raducanu rediscovers Wimbledon 'fun' factor after turbulent spell
- Winning all that matters at Euro 2024 for Mbappe's minimalist France
- Eight dead, two million affected by Bangladesh floods
- Robertson pleased to 'find a way' past England in tough Test baptism
- Martin sets lap record to secure German MotoGP pole
- 'Shattered' Germany set sights on World Cup after Euros exit
- Olympic hope Pedersen pulls out of Tour de France
- Djokovic eyes sweet 16 at Wimbledon as Swiatek takes on 'gangster'
- End beckons again for Ronaldo after Portugal Euros KO
- New Zealand edge England 16-15 in tense, brutal first Test
- Turkey take on Dutch in politically charged Euros quarter-final, England face Swiss
- Calling for better ties with West, Iran reformist wins presidency
- Cybercrime groups restructuring after major takedowns: experts
- Activists hail Sierra Leone child marriage ban, urge action on FGM
- Marsch relishing Canada's semi clash with Argentina
- Canada stun Venezuela on penalties to reach Copa semis
- Iran reformist Pezeshkian holds early lead in runoff vote
- Swiatek faces 'gangster' threat, Djokovic feels need for Wimbledon speed
- France holds its breath ahead of uncertain vote
- Starmer begins UK 'rebuild' after landslide election win
- Paris's Moulin Rouge inaugurates new windmill sails ahead of Olympics
- Pan, Rai share halfway lead in PGA John Deere Classic
- 'I was feeling terrible' in debate, Biden says in TV interview
- France coach Deschamps savours ending penalty hoodoo, defends Mbappe
- Thompson bids farewell to Warriors after exit
- Portugal exit Euros with pride, will return stronger: Martinez
- UK's new PM Starmer speaks to world leaders, names top team
- Spain and France to face off in Euros last four, Turkey lament 'unfair' Demiral ban
- Israel says negotiators to hold fresh Gaza truce talks next week
- France beat Portugal on penalties to reach Euro 2024 semi-finals
- Endrick to start for Brazil in Uruguay Copa clash: Dorival
- Heartbreak for Germany fans after dramatic Euros exit
- Beryl heads for Texas after causing damage, no deaths in Mexico
- Nagelsmann laments late penalty decision as hosts Germany exit Euros
- Biden declares he's all in ahead of high-risk TV interview
- Spain team 'is a winning horse', says De la Fuente
- Bows at the ready, Chad villagers battle kidnappings
- Alcaraz mimics Bellingham goal celebration after Wimbledon win
- Olmo hopes Pedri can make speedy return for Euros semi-finalists Spain
- Retiring Kroos hopeful despite Germany's 'bitter' Euros exit
- Southgate turns on English 'entitlement' over claims of easy Euros draw
- Merino extra-time goal sends Spain past Germany to Euro semis
- Koeman demands Dutch silence fervent Turkish fans at Euros
- Brad Pitt at Silverstone for filming of F1 movie
- Raducanu storms into Wimbledon last 16
- California fires spread in July 4 weekend heatwave
UK inflation hits decades high in cost-of-living squeeze
The annual rate of inflation in Britain rose to a near 30-year high in December, official data showed Wednesday, stoking fears about a cost-of-living squeeze as wages fail to keep pace.
The UK's inflation rate hit 5.4 percent last month and could move even higher with domestic energy prices set to rise further, according to analysts.
Economies worldwide are battling decades-high inflation that is forcing central banks to lift interest rates, including the Bank of England which last month raised its key borrowing cost for the first time in more than three years.
The BoE, whose chief task is to keep inflation close to 2.0 percent, is now expected to raise rates again at its next meeting in February amid easing concerns over economic fallout from the Omicron coronavirus variant.
The pound on Wednesday hit a near two-year peak versus the euro on increased expectations of another rate rise, while the European Central Bank has yet to follow the BoE in tightening monetary conditions.
BoE governor Andrew Bailey, addressing a cross-party panel of MPs Wednesday, refused to be drawn on the rate outlook, but said the prospect of prolonged high energy prices was "a cause of concern".
Finance minister Rishi Sunak earlier insisted that the Conservative government understood the cost-of-living squeeze.
However, the main opposition Labour Party argued that families would be rocked by "substantial" tax rises and "huge" increases in energy bills.
- Vast costs of pandemic -
The cost of living in Britain is forecast to soar even higher in April owing to a tax hike and further planned increases to domestic energy bills, according to analysts.
National insurance, paid by workers and employers, is being increased to help fund social care for the elderly.
Analysts expect more painful tax increases to foot the vast bill for Covid.
In addition, electricity and gas prices are set to rocket higher when the UK government shortly lifts a cap on energy bills amid record-breaking wholesale costs.
"With consumer prices rising at their fastest rate for three decades and wage growth slowing, Britons are being squeezed ever harder by the cost of living," said Jay Mawji, head of trading provider IX Prime.
The last time UK annual inflation was higher was in March 1992 when it had stood at 7.1 percent.
It had already reached a decade-high of 5.1 percent in November.
"The inflation rate rose again at the end of the year and has not been higher for almost 30 years," said ONS chief economist, Grant Fitzner.
"Food prices again grew strongly while increases in furniture and clothing also pushed up annual inflation."
Consumers and businesses are struggling with surging costs, ongoing pandemic turmoil and supply chain problems.
At the same time, real wages in November fell on the year for the first time since mid-2020, official data showed on Tuesday.
"More pain lies ahead in the form of tax rises in April and a likely 50-percent jump in energy bills," said IX Prime's Mawji.
The BoE has in December raised its key borrowing cost to 0.25 percent from a record-low level of 0.1 percent.
Capital Economics economist Paul Dales forecast the BoE would hike rates to 0.5 percent next month.
Equity trader Marc Kimsey, at stockbroker Frederick & Oliver, agreed that a February rate hike would now be "inevitable".
L.E.Campos--PC